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Nine Dragons planning to source 2.2 million tonnes of OCC for new mill in Malaysia

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Chinese mill group Nine Dragons is looking to build a new mill in Malaysia that will source 2.2 million tonnes per year of OCC from Europe and US.

When fully completed, the mill will produce 1.4 million tonnes per year of packaging paper and 0.6 million tonnes of dry pulp board.

The project will be completed in two phases with the first phase set for operation by September 2021 and completed by June 2022. This first phase will have an annual capacity of 1.3 million tonnes with 600,000 tonnes of this being converted into dry pulp board. A further 400,000 tonnes of packaging paper will be produced by the new PM47 machine and another 300,000 tonnes by the new PM48 machine.

In the second phase due for operation in September 2024 and completed by March 2025, a new PM49 machine will produce 400,000 tonnes per year of packaging paper and PM50 360,000 tonnes.

The OCC for the new mill will come from Nine Dragon’s existing channels in US and Europe, which are provided by its subsidiary ACN.

Dry pulp board from the mill will be exported for further processing and around 80% of the finished packaging paper will be exported. A further 15% will be used for local consumption and 5% sold on the free market.

The mill will be located at Kuala Langat in Selangor and has easy access to Port Klang.

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